Markets are off to a bright start, with miners leading the way, although engineering group Charter has missed out after an unexpected profit warning.

The group warned full year profits would not meet market expectations if trading conditions continued to be difficult. That seems a given, so its shares have plunged nearly 15%, down 84p to 480p. Welding business ESAB seems to be one of the main problem areas. Analysts at KBC Peel Hunt said:

"Charter has released an unexpected trading statement this morning. Demand at ESAB in May has declined substantially across both consumables and standard cutting equipment compared with the January to April period. Assuming current conditions persist to year end, our EPS forecasts for 2009 will potentially come back by 30% to 45p.

"At this level this would mean a 27% reduction to 2009 consensus. However, should end markets show an improvement towards the end of the year there is potential for this number to be exceeded. Applying a sector average PER multiple of 9.2 times to the new earnings estimate would result in a price of 415p versus last night's close of 564p."

Overall the FTSE 100 has climbed 74.44 to 4479.23, albeit volumes are fairly thin, with the Tube strike not helping things. The FTSE 250 is up 88.43 points at 7780.08. Owen Ireland, sales broker at spread betters ODL Securities, said:

"The FTSE has traded somewhat quietly four days in a row, and the positive news about TARP repayments in the US seems to have had little effect. That said, however, the markets have been steadily creeping up and investors aren't complaining about the rising value of their stocks."

Mining shares are benefiting from metal prices moving higher again on hopes for economic recovery and the recent dollar weakness - copper was up another 2% in Shanghai. Reports that China's industrial production rose by a better than expected 8.9% in May is also helping sentiment.

So eight of the top risers in the FTSE 100 are miners, with Eurasian Natural Resources Corporation up 48.5p at 724p after it said the decline in the dollar could temporarily lift the price of its most important commodity, ferrochrome, although it was still cautious about the overall outlook. Its associate Kazakhmys climbed 35p to 730p, while BHP Billiton was 68p better at £15.63, despite the latter announcing it had signed contracts for a significant amount of its metallurgical coal but at 58% less than in 2008. Details of new coal contracts by the miners have been eagerly awaited by sector followers.

The continuing rise in the crude oil price has also pushed the market higher. BP is up 13p at 542.75p, adding around 10 points to the leading index, while Royal Dutch Shell A shares have risen 39p to £17.10.

Elsewhere Balfour Beatty, the engineering and construction group, added 1.25p to 345p.25p. A last minute spurt in the share price yesterday following a well timed investor day saw the company narrowly avoid the ignominy of dropping out of the FTSE 100 in the latest quarterly review, which should be confirmed later today. Commenting on the investor day, Panmure Gordon analyst Andy Brown said:

"A series of divisional presentations and a site visit [to the Olympics Aquatics Centre] was a good reminder of the quality within Balfour Beatty. With plenty of opportunities and a drive towards greater integration of services, we reiterate our positive stance.

"While no update was made on current trading, the impact of a change in government was discussed. Initially spending plans do not change much as policy takes a while to implement. It is likely that there will be a shift towards power, water utility and transport infrastructure. The group is well positioned in these areas."